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Summit Semiconductor (WISA) Makes Loud Noise With Harman International Partnership

|About: Summit Semiconductor Inc (WISA)

Summary

Summit Semiconductor (WISA) adds another major audio brand.

Harman International Citation Series is huge opportunity for WISA.

WISA continues to grow after successful IPO earlier this year.

Summit Wireless (WISA) made more high-quality noise on Wednesday when they announced it has partnered with Harman International to deliver superior audio experiences for the innovative Harman Kardon Citation Series, showcased for the first time this week at IFA 2018. Summit is a leading provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems,

In its announcement, Summit told investors that they have partnered with Harman International and the Harman Kardon Citation Series to power a new line of highly sophisticated, wireless smart speakers featuring sleek industrial design and immersive audio. As part of the partnership. Harman's equipment will be benefitted and supported by Summit’s WiSA-certified technology that enables wireless, low latency multi-channel capabilities and authentic concert-quality stereo sound.

Brett Moyer, President and CEO of Summit Wireless, stated that,

“Our technology partnership with HARMAN is pivotal to our mission of enabling intelligent devices and next generation systems to deliver immersive, wireless sound that pushes the consumer experience to new heights,” . “Harman Kardon’s Citation Series addresses the needs of savvy consumers who want exceptional audio quality without compromise, and this new product line delivers on that.”

The Harman Kardon Citation Series is a system designed for discerning people who command sophistication and seamless capabilities that blend with their daily lives. The new Citation series offers new innovative features with voice control, multi-room, multi-channel surround playback, built-in Chromecast, and more. Taking advantage of Summit's Wisa technology, the Harman Kardon Citation Series of sleek, smart speakers includes the Citation TOWER, BAR, SUB and SURROUND -- each designed to fit a variety of home entertainment needs with seamless and integrated wireless capability.

Dave Rogers, President of Consumer Audio at HARMAN commented as well, stating,

“The Harman Kardon Citation Series sets a new standard for premium, wireless home audio and entertainment systems, and Summit Wireless is an integral part of delivering sophisticated, seamless solutions to consumers,” “Leveraging Summit’s WiSA-certified technology enables us to offer unprecedented immersive sound experiences that take full advantage of today’s most intelligent devices.”

Pre-orders for the Harman Kardon Citation Series can be placed on harmankardon.com starting October 2018.

A Big August For WISA

Just last month, Summit announced the addition of both Sound United and Eastech to their Wireless Speaker and Audio Association (WISA) roster. Both companies added to an already strong rate of growth in membership with major suppliers, manufacturers and speaker brands throughout the audio industry targeting home theater and business opportunities that can utilize WiSA’s 5.1 quality sound experience.

Sound United group brings to WISA high-quality brands that include Denon, Marantz, Polk Audio, Classe’, Definitive Technology and Polk BOOM. Additional names in the United Brand arsenal include HEOS and Boston Acoustics. The membership into the WiSA association will allow each of these unique brands to deliver high quality, wireless 5.1 sound and also provide access to Wisa’s specification, technical support, and testing protocols. More importantly, the membership will allow Sound United access to manufacturing partners to bring interoperable, wireless home theatre products to the market.

Also announced, Eastech will utilize the WiSA technology to enhance its position as a total acoustic solution provider to maintain its place as a leading developer and manufacturer for top-tier brand names in the consumer electronics industry. The membership into WiSA will also help to facilitate the expansion of Eastech’s footprint in Asia-based manufacturing centers with Hansong and GGEC members of WiSA as well. With the growing membership in Wisa, manufacturers will be benefitted with integration technologies and efficient product development processes that perpetuate quality production and system integration qualities.

beyond Harman Internation, Sound United and Eastech, in the last year WISA has added major brands that include Xbox, VOXX international, Goldenear, Electrocompaniet, Almando Primare and Infineon Technologies. To date, the WiSA Association consists of more than 30 member brands that include the world’s top manufacturers and resellers of audio products. Their membership keeps each brand devoted to the development and promotion of WiSA-certified products worldwide that deliver high-quality, 5.1 performance with the added benefit of ease of use and set-up characteristics.

Easy Set-Up, Great Sound

Summit is taking advantage of consumer trends that show continued adoption of the latest and more advanced audio technology, who are enjoying less reliance on decoding instruction manuals, knowing industry terminology, and the need to purchase the after-market guides often required to set up a home theater system that can deliver decent sound quality. Because of the advances getting brought to market by companies like Summit and its partners, consumers are now able to eliminate hours of research, produce optimal configurations and drop the need to conceal cables that are zigzagging across the room. In fact, the smart and informed audio enthusiasts are opting for products that operate under the WiSAAssociation, or Wireless Speaker and Audio. And, it's no secret why.

Summit's Tiny Chip Delivers Picture Perfect Sound

As discussed in a previous article, at its core, Summit Semiconductor, Inc. (NASDAQ: WISA) is focused on the development and sales of audio wireless chips, modules, and licensable IP that utilizes the WiSA Association interoperability standards. These standards enable consumers to enjoy studio-quality, 8-speaker sound wirelessly through a large variety of devices. At the same time, Summit Semiconductor is distancing themselves from competitors, serving up a portfolio of products and technology that emphasizes sound quality while keeping price points affordable. Not only is their technology accessible from a price standpoint, but it also exemplifies the meaning of “ease of set- up” and allows for system portability.

By utilizing the WiSA standards, the complicated process of installing and configuring numerous devices and cables is almost entirely eliminated, allowing the user to enjoy an uninterrupted listening experience right out of the box. An eight-speaker set-up, for instance, can take the average consumer just 30-minutes to install. Additionally, the interoperability standards mean that all WiSA certified devices are compatible with one another, eliminating the need for sourcing multiple components from different brands that may not function optimally together. That advantage provides users expanded capabilities and choice, allowing for the selection of a system that perfectly fits their individual needs.

Strong IP Portfolio At WISA

In addition to the growth of its wholly owned WiSA Association, Summit is also supported by 10 patents either awarded or in process serving as a foundation to their IP portfolio. These patents are valuable on a number of fronts. Unlike other connectivity solutions like Bluetooth and Wi-Fi, which are only able to be used with a very limited number of speakers, WiSA-enabled devices can deliver quality audio to up to eight individual speakers. Despite being wireless, the devices are able to transmit low-latency, high fidelity audio to smart devices including speakers, TVs, phones, tablets, PCs, and game consoles – and most importantly, keep all eight of these speakers perfectly in sync. And, the technology will be protected for years to come, which may be one of the primary reasons that so many of the world's top brands and manufacturers are signing up to WiSA enabled technology.

In essence, what WISA is doing is perpetuating a higher level of performance standards that were once only achievable on a handful of supported devices configured by knowledgeable users. Moreover, Summit Semiconductor and its WiSA technology allow for significantly simplified access to premium sound quality at a substantially lower price point compared to prior generations of high-quality audio options. Indeed, Summit and the next generation of WiSA products aim to take advantage of core strengths to dwarf the competition, and the numerous benefits of the platform could very well make this happen.

Building By Brand, IP, And Confidence

The addition of the Harman International and its Citation series on Wednesday is yet another vote of confidence in the capability and standard of excellence that Summit is bringing to market. Wednesday's announcement serves as an example of how tier-one brands and companies are joining Summit's WiSA revolution that is enabling uncompromising wireless sound quality with the benefit of an easy to set-up system.

Now roughly two months into public trading, investors are beginning to see the picture coming into focus for WISA. The company has a great brand membership, partnership with some of the world's greatest brands and the working capital necessary to drive continued growth of its brand and technology. As investors continue to digest the continuation of strong news, share prices at these levels may soon gain traction to the upside, especially when the share overhang typically associated with new IPO's runs itself dry.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.